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3 sample growth stocks with potential for further gains
At the end of the day, investors want to see returns. To achieve this goal, experienced Wall Street observers repeatedly apply one strategy: growth investing. A solid growth game is a name that looks like it will not only grow at an above average rate but will also reward investors well in the long run. As they roll up their sleeves, investors are beating the Wall Street sidewalk in search of the ticks with impressive long-term growth prospects. However, it’s one thing to keep a target in mind, but it’s another story to abandon these stocks in the coming years for profit. With that in mind, we appropriately and on our own hunt for the investment opportunities started with strong growth recovery. Using TipRanks’ database, we were able to determine 3 buy values that, according to Wall Street analysts, each have significant upside potential. Cowen Group (COWN) We start with Cowen Group, an investment bank in New York. Cowen offers investment management and brokerage services, and is known as a risk taker willing to engage early in disruptive sectors; Cowen was an early rise in high-tech dot.com stocks, and more recently in the marijuana sector. The bank’s main operations are in the US and the UK. The bank’s recent share growth was extraordinary; since this time last year, COWN shares have risen 534%. The share increase raised the company’s market capitalization to more than $ 1 billion and brought investors solid returns during the difficult corona crisis. After a decline in the first quarter of the year, the company showed three consecutive quarters in a row with year-on-year revenue and earnings gains. These gains were particularly impressive in Q2 and Q4; Looking at 4Q20, the most recent report, Cowen has a record quarterly net income of $ 90.5 million, according to GAAP benchmarks; the annual revenue was $ 209.6 million. The profit was driven by record performance in the investment banking services and the brokerage division. Cowen’s performance impressed Siperet Mody, a five-star analyst with Piper Sandler: After the continued and increased brokerage and banking activity of the business during 2020, the outlook for earnings improved significantly as banking pipelines remained robust and brokerage activity started strongly this year … The beat was wide across business boundaries, but largely driven by higher-than-expected income from investment banking services and brokerage fees as well as lower expense ratios. In addition, Mody considers Cowen to be overweight (ie buying), and its price target of $ 71 indicates room for an upward return of 78% from the current level. (To see Mody’s record, click here.) Piper Sandler’s analyst is the best outlier here, but Wall Street mostly agrees with Cowen, as shown by the 3 to 1 split that Buy to Hold reviews prefer. . Shares are priced at $ 39.86 and their average price target of $ 47 implies an increase of ~ 18% for the coming year. (See COWN stock analysis on TipRanks) Commercial Vehicle Group (CVGI). Talk about the car industry and you will of course start talking about the car businesses. But the industry is more than that – there is a whole network of parts suppliers and service companies that support the car manufacturers, and Commercial Vehicle Group lives in the niche. The company provides a range of services to the automotive sector, including warehouse automation, robotic systems, seating systems, plastic products, EV systems and mechanical systems. The commercial vehicle group’s customer base includes the commercial truck industry, electric vehicle manufacturers and the e-commerce warehouse industry. The big story here, for CVG, was the automation segment of the company. The corona crisis has inspired a major impact on e-commerce, and CVG has benefited from it. The company’s warehouse automation segment had a larger volume in 2020 – and greater efficiency due to downsizing actions during the year. Revenue from the fourth quarter was more than $ 216 million, a year-on-year gain of 14%. Operating income for the quarter was $ 5 million, an annual profit of $ 9.3 million. The quarterly results were the first year-on-year quarterly gains for the company in 2020 and come in after the company’s shares performed consistently better during the year. Shares in CVGI have risen 543% over the past twelve months, far exceeding broader markets. In a move that predicts the future, CVG this month announced a partnership with Xos, a commercial EV manufacturer, for the development of sustainability initiatives. 5-star analyst Christopher Howe, who covers this stock for Barrington, was impressed with the backlog of the new venture. ‘The company is making net new business profits of more than $ 100 million on an annual basis in 2020, mainly driven by warehouse automation and electric vehicles, which are expected to convert this year. If we move forward, he expects to make another $ 100 million in net new profits in 2021, ”Howe noted. The analyst added “[EV] activity is strong [and] the company expects these programs to remain in the development phase until 2021, which will later convert into revenue once the product baseline has stabilized. With regard to warehouse automation, according to Logistics IQ, the demand for warehouse automation products is expected to grow by about 20% per year until 2026. ”In light of these comments, Courts rate CVGI’s shares a better performance (ie buy), with a price target of $ 14 to give an upward one year of 39%. (Click here to view Howe’s record. There are two analyst reviews for this company, and they both agree: CVGI is a stock to buy. The shares have an average price target of $ 14, which is in line with Howe’s. (See CVGI stock analysis at TipRanks) Zedge, Inc. (ZDGE) We’ll be taking a look at stock growth with a software industry resident, Zedge, who offers smartphone customization options, which have proven very popular Zedge’s platform offers wallpapers, ringtones, app icons, widgets and notification sounds, among others. The Zedge app has more than 450 million installations and more than 30 million monthly active users – key statistics in the smartphone app universe. But the most telling statistics are this: Zedge has been in the top 25 free apps on Google Play for the past seven years, and this kind of popularity provides a solid foundation for a software company, and Zedge’s shares have borne fruit. et increased by 932% over the past six months, and this coincided with growing revenue. Zedge experienced five quarters in a row of year-on-year peak growth. The company reported its fiscal 2Q21 results on March 15, and the results were record-breaking for the company. Revenue is $ 5.3 million, net revenue is $ 2.3 million and profit is 17 cents. Monthly active users reached 35.4 million. The revenue figure represented a profit of 101% on an annualized basis; the EPS was higher than just 1 cent in the previous year. Following these results, Zedge revised its full-year revenue forecast for 2021 to a forecast of 75% to 80% growth. Analyst Allen Klee, of Maxim Group, is impressed with Zedge and sees a clear way forward for the company. “Zedge is accelerating growth from its advertising platform and new offerings. We expect the company to strengthen its ecosystem so that the 35 million monthly active users will be more involved with the platform, which will achieve better retention and earnings. We also expect that 2021 will have catalysts to expand the short story of Shortz and new entertaining podcasts, ”Klee said. Based on all of the above, Klee sets a Buy rating on ZDGE shares, coupled with a price target of $ 24. This target carries Klee’s confidence in Zedge’s ability to climb 57% higher in the next twelve months. Some stocks are flying under the radar, and ZDGE is one of them. Zedge’s is the only review of this company about analysts, and it’s definitely positive. (See ZDGE stock analysis on TipRanks) Visit TipRanks ‘best-selling stocks, a newly launched tool that combines all of TipRanks’ stock insights to find great ideas for growing stocks at attractive valuations. Disclaimer: The opinions expressed in this article are solely those of the proposed analysts. The content is for informational purposes only. It is very important to do your own analysis before investing.